estimate a small loss for the half year, page-7

THEPENNYGURU

I agree with you, however I think there is a bigger game to be played here. My belief is that Hoffmeister really does have interested parties to throw in some cash as well as possibly government and industry assistance but what he is trying to do is get CMI to either write off the debt and or extend the term of repayment or both.

Calling on the personal gaurantee may just bring the whole house of cards crashing down.

Remember CMI has the option to buy 45% of Industrial by cashing in the loan. If Hoffmeister has investors with cash CMI can always sell the vendor loan at a discount that will allow the investors to get a bigger slice of Hoffmeisters business. I suspect that is why Hoffmeister is trying so hard to get CMI to write off the loan or extend it.

I believ there is a bigger chance of getting more back for CMi by continuing the dialogue. CMI has taken the worste case and written the loan off so its only upside from here. and I suspect that CMI may get takenover before the upside it crystalised!